Friday, June 9, 2017

""Nothing Else Matters": Central Banks Have Bought A Record $1.5 Trillion In Assets In 2017"

From ZeroHedge:

One month ago, when observing the record low vol coupled with record high stock prices, we reported a stunning statistic: central banks have bought $1 trillion of financial assets just
in the first four months of 2017, which amounts to $3.6 trillion
annualized, "the largest CB buying on record" according to Bank of
America. Today BofA's Michael Hartnett provides an update on this
number: he writes that central bank balance sheets have now grown to a
record $15.1 trillion, up from $14.6 trillion in late April, and says
that "central banks have bought a record $1.5 trillion in assets YTD."

The latest data means that contrary to previous calculations, central
banks are now injecting a record $300 billion in liquidity per month, above the $200 billion which Deutsche Bank recently warned is a "red-line" indicator for risk assets.

This, as we said last month, is why "nothing else matters" in a market addicted to what is now record central bank generosity.

What
is ironic is that this unprecedented central bank buying spree comes as
a time when the global economy is supposedly in a "coordinated
recovery" and when the Fed, and more recently, the ECB and BOJ have been
warning about tighter monetary conditions, raising rates and tapering
QE....MORE